Is Deepak Fertiliz. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Deepak Fertilizers has moved from fair to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 23.08, an EV to EBITDA of 13.03, and a PEG ratio of 0.22, which suggests that while growth expectations may be favorable, the current price does not justify the valuation based on earnings growth.
In comparison to peers, Deepak Fertilizers' PE ratio is significantly lower than Coromandel International's 41.21, indicating a substantial premium in that competitor's valuation. Meanwhile, Chambal Fertilizers, which is rated attractive, has a much lower PE of 13.73, further highlighting the relative overvaluation of Deepak Fertilizers. Additionally, the company's strong stock performance, with a YTD return of 42.24% compared to the Sensex's 7.00%, may not be sustainable given its current valuation metrics.